Topic: The Russian Federation may be about to make a "Corralito" - page 4. (Read 820 times)

Simple math says that there really is a difference if the price of 1 liter of fuel is now 2.30 EUR because that would mean that for a full tank of about 50 liters, the owner should pay 115 EUR, while at a price of 3 EUR, he should pay 150 EUR. That difference may not seem too big to you, but apart from Bulgaria and Romania that you mentioned, average salaries are relatively low in Greece or Croatia. 35 EUR more for a fuel tank means a lot to someone, especially for those who use their vehicle every day.

Compared to last year, the price of fuel in Russia is more than 50% higher - tanks and military machinery consume too much?

https://autotraveler.ru/en/russia/trend-price-fuel-russia.html

This makes me wonder how much confidence the Russian people have in their currency. This kind of measures have been taken here in Venezuela and in Argentina because the high inflation and loss of faith in the national currency.

Assuming the average Russian citizen still have faith on their currency, could not one clasify this as a way to artificially increase or keep the value of the Russian Ruble against USD and EUR ?

This makes me doubt of the economical support Putin have from the population, to be honest.

Bitcoin certainly looks like a very good solution and somehow of a safe-haven for the russian population. I mean Russia hasn't banned cryptocurrencies, quite the contrary --> they have stated they are accepting payments in Bitcoin from their partners. Fiat is a very risky instrument to store your wealth right now due to political and economic uncertainties. Why would I want to hold Ruble besides covering my monthly expenses when the whole world is against the country's government?

There is one thing I know --> when the state performs major interventions in the economy, the long-term effects are most of the time catastrophic

Don't worry about Italy, prices are already 2.30. It's practically 3.

And in Greece and Italy and Spain. Also, not everyone in countries like Germany has high incomes. High income earners won't be so affected, obviously but to call it ridiculous money is quite short-sighted because the price of gasoline affects supermarket prices, because the products are transported, and many are wrapped in plastic, many of which are petroleum derivatives.

Yeah yeah... when this happens, when that happens, when this when that...

Sure, I can picture Germany, with lignite enough to burn the moon, having "cold" in winter. Count on that.

EU bureaucrats are what they are, but if you want to compare them with the "genius" in charge of the RF Orc army... well... then they are smart.


Not to mention having to pay Ponzi scheme level interests on debt and savings.

To be honest, I thought they already have something like corralito. As the op mentions, the 80% selling requirement was introduced on February 28 and additional limits in the spring as well. So heavy restrictions are already available, but I don't think more will follow just because of the technical default. The default is, after all, technical, for Russia has the money but can't transfer it internationally due to sanctions. That means that inside the country, there are funds, and I don't think people will run from fiat much (not after it got stabilized quite well in Russia).

Careful planning to strengthen the ruble exchange rate? Feverish measures aimed at saving the ruble, quite unexpectedly for Russia, led to a completely opposite negative result, since the strengthening of the ruble greatly harms the country's financial system and its industry.

A record number of sanctions have been imposed against Russia. At the same time, thousands of the largest companies in the world, in protest against the aggressive policy of the Kremlin, began to curtail cooperation with Russia. The country's imports collapsed, exports began to decline rapidly.

The disaster was recognized by the head of the Ministry of Economic Development Maxim Reshetnikov, as reported by the Russian media.
Reshetnikov called on the Central Bank to take urgent measures to weaken the ruble, predicting the collapse of Russian industry. He noted that the profitability of a number of Russian export-related industries became negative due to the inadequately low exchange rate of the national currency.

Now I can tell how the issues of international sanctions are being resolved in Russia and how the Kremlin is trying to circumvent them. Putin recently signed a law legalizing smuggling in his country. We are talking about the legalization of the so-called parallel imports. This law gives the Russian government the right to determine goods for which Russian companies will not be held criminally, administratively or civilly liable for smuggling. The list, in particular, included equipment and electronics, weapons, soap, medicines. The list included products from brands such as Samsung, Siemens, Apple, Panasonic, Intel, Asus, Logitech, GoPro and Electolux.
This is the piracy way in which international issues are resolved by a terrorist state.

You are posting old information.

May, 23rd
The authorities allowed exporters to sell 50% of foreign exchange earnings instead of 80%
https://www.forbes.ru/finansy/466417-vlasti-razresili-eksporteram-prodavat-50-valutnoj-vyrucki-vmesto-80

June 10th
The Ministry of Finance canceled the requirement to sell foreign exchange earnings
The decision concerns both raw and non-commodity exports and applies to export contracts in any foreign currency
https://www.rbc.ru/economics/10/06/2022/62a31eb29a7947f20a821820

The sanctions are directed against Europe. The Chinese and Turks will take a large share of European business in Russia.

It's ridiculous money compared to income in Europe.
In Bulgaria and Romania and Estonia it would be hard, of course.

EU bureaucrats have always presented themselves as extra smart, and now they have turned out to be almost the dumbest when it comes to energy policy. It's not just green energy, but that almost 500 million people now live in fear that they will not be able to heat next winter, or that the price of fuel will reach 3 EUR per liter, so they will have to ride bicycles or use public transport.

The utterly failed policy of making so many people dependent on just one country for oil and gas will hit those in power now. Parliamentary elections in France have shown that some radical political options will get more and more space, and Russia is counting on such an outcome. The real war may end in a few months, but the Cold War will last for years and will have far more severe consequences than in the past.

As Europe slowly pivots away from Russian energy supplies, the final major source of income it receives is going to dry up or at least drop substantially as other countries will pay less for it. Claims that the rouble is strong are undermined when we see these sort of capital controls in place, if it was allowed to float and trade in a free market then we would see a huge outflow of money trying to escape Russia - as it is a very risky and unstable business environment, which is very bad for finances.

It's true, this kind of financial implementation scheme is almost the same as what we saw about the wartime Ruble strengthening plan. Besides, it is clear that in order to organize the power of the country's currency and limit the circulation of foreign money. Trying to get people used to it little by little eroding foreign money. Based on the sources above that the agreed date and year, without us knowing it from the start, Russia prepared the ruble financially, followed by the tragedy at the end of February.

Hmm.  I know I've brought this up multiple times over the years, but does anyone remember Long Term Capital Management from 1997-8?  It was Russia defaulting on their debt that almost brought down the economies of the US and probably other countries as well.  Hopefully there aren't any gigantic hedge funds these days using massive leverage to trade foreign currency....hopefully.

And no one saw that near-disaster coming either.

Make a world map of the countries that support this ban.
And look at what BRICS is.

1$ = 53 rub

Russia is already dependent on BTC and some other cryptocurrencies to some extent, but the constant sanctions will definitely increase their dependence on them even more as time passes.

They keep acting like their economy is fine which is obviously a lie and anyone with a half-decent brain can see that. Recent gold imports ban was another big blow to them.

And some people are still happily proclaiming that the Russian ruble is the world's strongest currency as if everything's not artificial and fake. All these extreme totalitarian measures are the reasons why the country's currency is still breathing. Without all these controls, it will crash.

So it's not a maybe for Bitcoin; it is the answer. Unless perhaps if they are already brainwashed to the bones that they think it is wiser to save in ruble than Bitcoin.

I think Europe will only need one cold enough winter to get all the renewable energy shit out of its head.

All objective analyzes say that Russia will start feeling sanctions only in 2-3 years, provided that those who imposed them actually implement them. But what few mention is that Russia and its rulers have never cared too much for the common people, and are willing to sacrifice human lives and the standard of their people as long as it takes to achieve their goals that are now more than clear, creating great Russia within its historical borders.

Every day I hear about war crimes happening in Ukraine unseen since World War II (and crimes are undoubtedly happening), but everyone has obviously forgotten what happened in the Balkans 30 years ago when Serbs committed far more horrific war crimes in Vukovar and Srebrenica (and hundreds of other places) for which they were rewarded today with accession negotiations for EU entry.

I'm just wondering how long it will take the world to start pretending that nothing happened, 10 years after the war or maybe a few years more?

The government have been trying to do this since the war started to keep the value of rubles above and about and they have succeeded up until now. I do think that the locals might try and : Move to some other country since no one can live like that and at the same time be able to do everything normally since the foreign companies would also start to get out of Russia. Considering bitcoins, it is included into the sanctions as well therefore at the end of the day I do think that eventually it would be harder for people to buy properties in foreign countries through bitcoins as some Russians will doing it, this is going to cause a massive unrest in the public sector and the government as well.